The IRS furloughed 34,000 employees due to a government shutdown but still released updated tax brackets for 2026 in response to inflation. The brackets have been raised by about 2.7%, a modest increase compared to previous years. There are new brackets for individual filers and married couples filing jointly.

Income thresholds have been adjusted, with the lowest tax bracket increasing by 3.9% for individual filers and 3.9% for married couples filing jointly. The top marginal tax rate floor has also been raised by 2.3%. These changes could impact how much you owe in taxes next year.

The IRS has also raised deductions and credits, including an increase in the earned income tax credit for families with three children. Older Americans could benefit from a new senior tax deduction. While the tax brackets have seen a modest increase, other changes could result in lower tax liabilities for many taxpayers.

Despite the relatively small bump in tax brackets, broader deductions and credits offer more flexibility in managing taxes next year. These changes aim to provide relief for taxpayers across various income levels and situations.

Read more at Yahoo Finance: The IRS quietly released new tax brackets for 2026. Some Americans will save thousands while others won’t be so lucky